$LDOS

Leidos Holdings, Inc.

CIK:0001336920|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2026	Jul. 04, 2025	Jul. 03, 2026	Jul. 04, 2025
Income Statement [Abstract]
Revenues	$ 4,558	$ 4,253	$ 8,958	$ 8,498
Cost of revenues	3,741	3,471	7,380	6,959
Selling, general and administrative expenses	283	217	506	447
Acquisition, integration and restructuring costs	27	2	62	6
Equity earnings of non-consolidated subsidiaries	(7)	(8)	(12)	(15)
Operating income	514	571	1,022	1,101
Non-operating expense:
Interest expense, net	(69)	(55)	(124)	(104)
Other income (expense), net	6	2	(18)	(1)
Income before income taxes	451	518	880	996
Income tax expense	(95)	(125)	(189)	(238)
Net income	356	393	691	758
Less: net income attributable to non-controlling interest	2	2	9	4
Net income attributable to Leidos common stockholders	$ 354	$ 391	$ 682	$ 754
Earnings per share:
Basic (in dollars per share)	$ 2.81	$ 3.03	$ 5.41	$ 5.84
Diluted (in dollars per share)	$ 2.81	$ 3.01	$ 5.37	$ 5.80

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jul. 03, 2026	Jul. 04, 2025
Cash flows from operations:
Net income	$ 691	$ 758
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	153	141
Stock-based compensation	51	46
Deferred income taxes	(2)	200
Net loss on pension plan settlement	20	0
Other	14	0
Change in assets and liabilities, net of effects of acquisitions and dispositions:
Receivables	(193)	(236)
Other current assets and other long-term assets	38	(34)
Accounts payable and accrued liabilities and other long-term liabilities	97	(260)
Accrued payroll and employee benefits	34	7
Income taxes receivable/payable	191	(78)
Net cash provided by operating activities	1,094	544
Cash flows from investing activities:
Acquisition of a business, net of cash acquired	(2,338)	(285)
Payments for property, equipment and software	(63)	(51)
Divestiture of a business	4	0
Net proceeds from sale of assets	4	0
Other	(4)	0
Net cash used in investing activities	(2,397)	(336)
Cash flows from financing activities:
Proceeds from debt issuance	1,397	997
Repayments of borrowings	(10)	(559)
Payments for debt issuance costs	(15)	(7)
Dividend payments	(110)	(105)
Repurchases of stock and other	(315)	(537)
Proceeds from issuances of stock	33	31
Net capital distributions to non-controlling interests	(3)	(7)
Other	(7)	(6)
Net cash provided by (used in) financing activities	970	(193)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	0	14
Net (decrease) increase in cash, cash equivalents and restricted cash, including cash classified in current assets held for sale	(333)	29
Less: change in cash balances classified as assets held for sale	41	0
Net (decrease) increase in cash, cash equivalents and restricted cash	(374)	29
Cash, cash equivalents and restricted cash at beginning of period	1,204	991
Cash, cash equivalents and restricted cash at end of period	830	1,020
Less: restricted cash at end of period	82	90
Cash and cash equivalents at end of period	748	930
Supplementary cash flow information:
Cash paid for income taxes	9	162
Cash paid for interest	112	100
Non-cash investing and financing activity:
Property, plant and equipment additions	3	4
Finance lease obligations	$ 1	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jul. 03, 2026	Jan. 02, 2026
Assets:
Cash and cash equivalents	$ 748	$ 1,108
Receivables, net	2,968	2,708
Inventory, net	94	342
Other current assets	493	656
Assets held for sale	943	0
Total current assets	5,246	4,814
Property, plant and equipment, net	900	961
Intangible assets, net	943	458
Goodwill	7,663	6,342
Operating lease right-of-use assets, net	491	526
Other long-term assets	389	392
Total assets	15,632	13,493
Liabilities:
Accounts payable and accrued liabilities	2,180	1,988
Accrued payroll and employee benefits	855	819
Current portion of long-term debt	22	20
Liabilities held for sale	163	0
Total current liabilities	3,220	2,827
Long-term debt, net of current portion	6,009	4,628
Operating lease liabilities	547	587
Other long-term liabilities	520	489
Total liabilities	10,296	8,531
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock, $0.0001 par value, 500,000,000 shares authorized, 125,492,013 and 126,380,657 shares issued and outstanding at July 3, 2026, and January 2, 2026, respectively	0	0
Additional paid-in capital	88	319
Retained earnings	5,219	4,647
Accumulated other comprehensive loss	(23)	(50)
Total Leidos stockholders’ equity	5,284	4,916
Non-controlling interest	52	46
Total stockholders' equity	5,336	4,962
Total liabilities and stockholders' equity	$ 15,632	$ 13,493